Philanthropy is a personal choice that people make for a wide range of reasons. That’s why in 2008 BNP Paribas Wealth Management Monaco created a specialist department, to offer clients personalised advice on their philanthropy journey. Fabio VITALE, Head of Wealth Planning & Impact Solutions at BNP Paribas Wealth Management Monaco, helps clients to work out tailored strategies for managing their assets and achieving their philanthropic goals effectively.
How would you define philanthropy advice?
It combines two areas of expertise: wealth management advice on the one hand, coupled with a holistic, sustainable approach to help clients focus their philanthropic actions in the right areas, in line with the values that are important to them. We aim to help clients align their wealth with their sustainable development beliefs.
The first crucial step is to identify the client’s values and goals, and then help them to understand the various strategic, operational, and financial aspects of the sector they want to make a difference in.
Clients are often driven by emotion. It’s our job to give them rational information and practical solutions, and guide them towards a clear path.
Would it be fair to describe it as philanthropy planning?
Absolutely. Once that first step is complete, we analyse the client’s chosen cause. Is there a real need? Are there already other people or organisations meeting that need? Could the client work with them?
Next, we map out a strategy, to enable the client to put their plan into action for the benefit of society. We look at the legal and operational implications what kind of legal structure would be best suited for the project? What are the legal and tax considerations? How should partners and beneficiaries be selected?
Finally, we create a financial management plan with the client. What financial resources are available?
To address the issue of sustainability, we’ve developed our own rating system. We use an internal evaluation chart to award each financial instrument regardless of asset class a rating from 0 to 10 (where ten represents the most sustainable). This makes it easier for clients to compare financial instruments based on sustainability, and lets them see how sustainable their overall portfolio is.
We also use an application called MyImpact to help clients identify exactly what they expect from their sustainable investments and philanthropy, and guide them towards wealth management solutions that best reflect their values.
What does a philanthropist typically look like today?
People are deciding to embrace philanthropy earlier in life. Philanthropy is becoming a family value, about pulling together and paying it forward. Many entrepreneurs opt for a kind of philanthropy inspired by financial methods, especially private equity. “Philentrepreneurs” are people who want to organise their philanthropic projects using methods inspired by the world of entrepreneurship, an approach we call “venture philanthropy”. They don’t just make a financial commitment they also draw on their own skills and professional network to further their chosen causes. They aim for efficiency, and generally look to social return on investment as their key metric. The younger generation of entrepreneurs is also particularly open to using technologies and hybrid methods to maximise efficiency and global impact.
Has philanthropy been impacted by the digitalisation of the economy?
Absolutely. More and more people are using platforms as a way of giving.
As philanthropic organisations gradually adopt digital technology, practices will change with access to data of guaranteed quality. The big issue right now is data. With so much data available, we can pinpoint exactly where value is being created, and clients can make completely objective decisions.
To sum up?
The holistic view of sustainability is changing the face of philanthropy. In the Principality,
H.S.H. Prince Albert II has been a staunch proponent of sustainable values since the start of his reign. So it’s a very fertile environment for philanthropy, with wealthy individuals looking to give meaning to what they do, and the younger generation taking up the baton. Monaco has done much for the cause of philanthropy, and I have no doubt at all that, likewise, philanthropy expertise can be a valuable asset for the Principality.
